Govt adopts ‘3-R’ strategy to tackle economic risks

The government has adopted a “3-R” strategy in the national budget to address potential economic pressures arising from global uncertainties, the Middle East conflict and external sector challenges, Finance Minister Amir Khasru Mahmud Chowdhury told Parliament.

Responding to a question from Chandpur-2 lawmaker Md Jalal Uddin during the question-answer session of the 14th sitting of the second and first budget session of the 13th Jatiya Sangsad on Tuesday, the finance minister outlined the government's preparedness to safeguard the economy against emerging global risks.

The minister said the government is pursuing a “3-R Strategy” comprising Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration to mitigate external sector vulnerabilities. The strategy aims to maintain macroeconomic stability, diversify exports and build a more productive and competitive economy.

Considering the potential impact of prolonged instability in the Middle East on overseas employment and remittance inflows, the government is focusing on creating new labour markets for Bangladeshi workers.

To encourage remittance inflows through formal banking channels, the government has continued the 2.5% cash incentive on remittances.

The finance minister also said measures have been adopted to strengthen foreign exchange reserves through export diversification, curbing non-essential imports and maintaining exchange rate stability.

Addressing concerns over rising global prices of fuel, liquefied natural gas (LNG) and fertilisers amid the Middle East crisis, he said the government plans to diversify energy sources and enhance domestic gas exploration.

The budget also includes commitments to improve power and energy supply systems and continue subsidy support where necessary to protect the economy from external shocks, he added.

TZ